Question: Use the following information to answer the below question Current 1-year spot rate = 5.5% the 1-year forward rate one year from now: f1 =

 Use the following information to answer the below question Current 1-year

Use the following information to answer the below question Current 1-year spot rate = 5.5% the 1-year forward rate one year from now: f1 = 7%, the 1-year forward rate two years from now: f2 = 12% the 1-year forward rate three years from now: f3 = 16% The value of a 4-year, annual 5% coupon $1,000 par value bond would be closest to: O 1030.02 O 1110.31 995.89 O 847.17

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